Markets seriously underpricing US-Iran risks, threat not over: Nouriel Roubini
In between the possibilities of a full-scale war leading to a recession and a risk-free scenario, there is possibility of limited contained conflicts via proxy wars which will lead to global growth slowdown, says Nouriel Roubini, Chairman, Roubini Macro Associate, in an exclusive interview with ETNOW.
Just about 48 hours ago, the global financial markets were on tenterhooks about the Iran-US situation after General Qesim Soleimani’s assassination and the retaliation from Iran. But markets were quite pleasantly surprised by the way it has dialed down. Do you think this is over? Has the risk gone for now?
I do not think the risk is gone. The markets are seriously under pricing these particular geopolitical risks. Markets are essentially assuming that maybe after this attack by Iran on the US base, not much else is going to happen. We are going to go back to the previous status quo.
Source: The Economic times